BHR CB proposed the adoption of ESG disclosures to be made in the licensees' annual reports/ financial statements as per the proposed ESG reporting guidelines.
ESG Reporting
The objective of the Guidelines is to establish a uniform framework for listed companies and licensees to disclose their ESG performance and sustainability efforts.
Covers important aspects of ESG reporting, such as stages involved in creating an ESG report, recommendations, resources, and common pitfalls when preparing report.
The topics are to be viewed in conjunction with relevant international best practices, frameworks and guidelines (which are referred to within the document in Appendix 2).
Aims to promote consistency, reliability to ensure transparent, comparable disclosures.
Consultation
Input is needed with regard to readiness and also time needed for full implementation.
BHR CB is considering requiring listed companies and BHR CB licensees to whom the circular is addressed to implement these guidelines for the year ending Dec. 31, 2024.
Effectiveness
Comments are requested to be provided (including nil comments) by Sep. 17, 2023.
Nov. 2023 ESG Module
On Nov. 5, 2023, BHR CB issued ESG requirements module (module ESG) including ESG reporting requirements applicable to listed companies and BHR CB licensees.
Reporting requirements are important for effective adoption of ESG frameworks which contributes to Kingdom of Bahrain’s commitment to sustainable development goals.
BHR CB recognizes that in initial years there may be data/methodological challenges.
Companies must take reasonable steps to report KPIs using alternative methods or simplified reporting mechanisms where disclosure would remain fair, not misleading.
Also explain limitations on ability to report and steps taken to address limitations.
Requirements are effective from year ending Dec. 31, 2024; this means that the first report for the year ending Dec. 31, 2024 is due in 2025.
Module ESG shall be incorporated under Common Volume within rulebook shortly.
Document dated Nov. 5, 2023, received from BHR CB Nov. 8, summarized on Nov. 10.
Nov. 19, 2023 Press Release
On Nov. 19, 2023, BHR CB reminded of the ESG requirements module issued Nov. 5.
Recognizes module ESG as transformative step towards sustainable financial market.
Uphold transparency in disclosures promoting strong corporate governance standards.
Module draws on global standards and frameworks to ensure effective ESG integration.
Encourages firms to implement strategies enhancing their environmental performance.
Emphasizes addressing ESG-related risks aligning with Bahrain Economic Vision 2030.
Jan. 2024 Rulebook Quarterly Update
On Jan. 14, 2024, BHR CB issued circular on January 2024 quarterly rulebook update on introduction of environmental, social and governance requirements (ESG) module.
Document dated Jan. 14, 2024, received from BHR CB Sep. 4, summarized on Sep. 9.
Licensees must ensure that all relevant staff are informed of the latest quarterly update and that where needed, appropriate action is taken to ensure full compliance.
